A Company Recorded 2 Days of Accrued Salaries of $1,400

question 202

Multiple Choice

A company recorded 2 days of accrued salaries of $1,400 for its employees on January 31.On February 9,it paid its employees $7,000 for these accrued salaries and for other salaries earned through February 9.The January 31 and February 9 journal entries are:

• A)1/31 Salaries Expense ………………………… 1,400 Salaries Payable …………................1,400
• 2/9 Salaries Payable ………………………….7,000
• Salaries Expense ………………………… 1,400
• Cash..………………………………… 7,000
• B)1/31 Salaries Payable …………………………..1,400 Salaries Expense……………………...1,400
• 2/9 Salaries Expense…………………………..5,600
• Salaries Payable…………………………...1,400
• Cash…………………………………...7,000
• C)1/31 Salaries Expense…………………………..1,400 Cash…………………………………..1,400
• 2/9 Salaries Expense………………………….7,000
• Cash………………………………….7,000
• D)1/31 Salaries Expense………………………….1,400 Salaries Payable……………………...1,400
• 2/9 Salaries Expense…………………………..7,000
• Cash…………………………………...7,000
• E)1/31 Salaries Expense………………………….1,400 Salaries Payable……………………… 1,400
• 2/9 Salaries Expense…………………………..5,600
• Salaries Payable…………………………...1,400
• Cash…………………………………...7,000

Analyze the impact of changes in the money supply on interest rates and investment spending.

Identify expansionary and contractionary monetary policy measures.

Assess the effectiveness of monetary policy in closing recessionary and inflationary gaps.

Describe the relationship between the money supply, interest rates, and investment sensitivity.

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Definitions:

Controllable

Controllable usually refers to expenses or costs that can be managed or influenced by decisions made by a company or an individual.

Volume

Refers to the amount of an asset or security that changes hands over a set period of time, commonly used in financial markets to gauge trading activity and liquidity.

Material Variances

The difference between the actual cost of materials used in production and the standard cost of materials that should have been used.

Quantity Variance

The difference between the expected and actual quantity of materials or labor used in a production process.